Question

Interest on Rhea’s drawings @ 10\% p.a. for the year ended 31\textsuperscript{st March, 2023 will be:}

• A. ₹ 6,000
• B. ₹ 4,500
• C. ₹ 3,000
• D. ₹ 1,500

Hint:

To calculate interest on drawings, always multiply the total drawings by the rate of interest and the average period based on the timing of withdrawals.

Answer 1

The Correct Option is B

1. Aggregate Drawings: ₹ 30,000 multiplied by 2 equals ₹ 60,000. 2. Mean Duration: The average period is calculated as \(\frac{6 + 3}{2 \times 12} = \frac{9}{12}\) years, reflecting withdrawals at the commencement of each semi-annual period. 3. Interest on Drawings Calculation: \[\text{Interest} = ₹ 60,000 \times \frac{10}{100} \times \frac{9}{12} = ₹ 4,500.\]